Will vertical property cards be a game-changer for flat owners?

Mint explains how.

What are vertical property cards?

The proposed vertical property card would serve as a legal document showing two main things: the total land area of the building and a flat owner’s individual share of that land. It may serve as a supplementary document to the main property card.

For instance, a single building or housing society may have 100 different flat owners, but the current property records don’t clearly divide that piece of land among all the owners. The new cards will state every flat owner’s share of the land, potentially bringing clarity on ownership, particularly regarding the land on which the building stands and areas meant for common use. It will also create a uniform framework for noting ownership details of individual flat holders in government land records across the state.

While new flats will automatically get this card, owners of existing ones will need to apply for it.

How does the system work right now?

Currently, most flat owners across Maharashtra, particularly in Mumbai’s multistorey buildings, hold proof of ownership such as sale deeds and share certificates issued by housing societies. The names of individual flat owners, however, are not recorded in land revenue documents. Property rights recorded under the Maharashtra Land Revenue Code, 1966 typically mention the name of the land-holding entity, which is usually the cooperative society or developer. That will change with the new vertical property cards.

The committee will draft rules integrating flat ownership into land records, and document the common areas and land beneath buildings or housing societies. A report is expected to be submitted soon.

Will this increase the value of flats?

The new cards may not increase the value of a flat in a primary transaction, but it could help improve the resale value and make various processes simpler. With a clear land title and proof of the flat owner’s share recorded on the card, future transactions for a particular flat will be easier for banks and buyers. It will also make inheritance, sale and mortgage simpler.

What are the other benefits of the new card?

According to the Maharashtra government, the initiative is aimed at simplifying home loans, property transactions and redevelopment. Once implemented, it could help avoid ownership disputes, control illegal construction, and simplify property transactions. Currently, buying or selling a flat can be a long and complex process simply because the flat owner’s share of the land isn’t documented. The new card will allow for this to be verified almost instantly.

Traditional land records fail to capture ownership nuances in multi-storey buildings. That creates challenges in property management, verification, and financing in vertically growing cities.

How will this affect Mumbai’s redevelopment frenzy?

The Mumbai Metropolitan Region is seeing a redevelopment frenzy in which old housing societies are being torn down and replaced with modern highrises. Property advisory Knight Frank India has estimated that the current redevelopment projects in Mumbai will add a total of 44,277 new homes valued at ₹1,30,500 crore.

Currently, if a society goes in for redevelopment, the lack of clear land records can lead to disagreements or disputes among flat owners over rightful ownership, and who should get which flat in the new construction. The new property cards could go a long way towards curbing this.